Web3 is a new evolution of the Internet based on principles of decentralization. It includes technologies such as blockchains and non-fungible tokens.
Many of these protocols offer services like compute, storage, identity, and hosting. These are often funded via cryptocurrency, removing the need for any intermediaries. Some are even open source.
What is Web3?
Web3 is a set of technologies that seek to transform how the internet works, and democratize it. It’s based on blockchain technology, which can shatter the monopolies that now control how information is stored and shared online.
It’s an evolution from today’s Internet, which we call Web 2.0. Web 2.0 was characterized by sites like Google and Facebook that collect user data, and offer highly personalized experiences.
In Web3, users own their data and can take it with them when they leave a network. Users also have more choices about what they share, and can even monetize their data.
Blockchain-based games are the most prominent examples of Web3. These offer individualized economies in which players have real ownership over objects that can be used within the game. It’s a powerful concept that may transform the way we live, work, and play. But it’s still in its early stages, and many people don’t understand what it is.
What is Web3 Gaming & Metaverse?
Web3 gaming is a new generation of online games such as Chainers.io that leverage blockchain technology and decentralized systems to provide a more secure and transparent gaming experience. These games also often allow players to own and trade their virtual in-game assets.
A few of these games have already launched and are seeing success in the market. For example, Undeads Metaverse is a multiplayer survival game that has already raised more than $5 million in private investment and boasts high production values and a robust in-game economy. It also features play-to-earn mechanics, which allow players to earn crypto in-game by completing missions and ranking on daily, weekly, or monthly leaderboards.
Another example of a successful Web3 gaming project is Upland, which lets users acquire digital land plots and build their own virtual worlds. Upland has also partnered with top influencers to build a strong community.
How to Invest in Web3 Gaming & Metaverse?
Investing in the future of gaming is an exciting opportunity for anyone looking to take advantage of the growing industry. While it may be a little early to jump in, many experts believe that the metaverse will soon become as popular as PC/console or mobile games.
One of the key reasons for this is the fact that web3 gaming offers players a chance to profit from their in-game achievements by earning virtual land plots as NFTs, which they can then sell on the secondary market. This type of gameplay is also known as a “play-to-earn” game.
Despite the cryptocurrency market’s recent downturn, investments in gaming projects and metaverse platforms continue to attract significant capital. According to DappRadar, blockchain gaming projects received $1.3 billion in investments in Q3 2022. However, it is important to remember that investing in the future of gaming is a high-risk investment. Therefore, it is essential to choose a project with well-known founders and assess your risk tolerance level carefully before making any decisions.
Web3 Gaming & Metaverse Investments
Web3 video games are becoming increasingly popular, and some Web3 investors are putting money into these projects. For example, in March 2023, game streaming startup Loco raised $42 million from South Korean crypto venture firm Hashed to help fund and develop its own platform for gaming on the Web3. In addition, a number of venture capital firms have begun investing in this space. In particular, a16z has committed $3 billion to blockchain-based gaming and metaverse companies.
Metaverse investments rebounded in July 2023, reaching $297 million. The majority of this funding was directed towards infrastructure projects, demonstrating investor faith in the future of the Metaverse and virtual worlds.
This is especially noteworthy given the broader cryptocurrency market downtrends and increased regulatory uncertainty, such as the U.S. Securities and Exchange Commission (SEC) investigation of Binance. In addition, Google’s recent policy update on its Play Store platform paves the way for new types of blockchain-based gaming experiences. This could significantly boost the growth of this sector.
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